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ERIC

Telefonaktiebolaget LM Ericsson (publ)

ERIC

Telefonaktiebolaget LM Ericsson (publ) • NASDAQ
$9.60 ▲ 0.52% (+0.05)
Market Cap $31.99 B
52w High $10.35
52w Low $6.64
Dividend Yield 0.24%
P/E 12.31
Volume 2.77M
Outstanding Shares 3.33B

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $55.339B ▲ $19.035B ▼ $10.971B ▲ 19.824% ▲ $3.29 ▲ $17.076B ▲
Q2-2025 $55.081B ▲ $19.637B ▲ $4.482B ▲ 8.136% ▲ $1.34 ▲ $8.876B ▲
Q1-2025 $51.594B ▼ $19.22B ▼ $3.89B ▼ 7.54% ▲ $1.17 ▼ $8.402B ▼
Q4-2024 $74.822B ▲ $24.422B ▲ $4.904B ▲ 6.554% ▲ $1.47 ▲ $11.56B ▲
Q3-2024 $59.781B $20.619B $3.69B 6.172% $1.11 $7.854B

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $50.822B ▲ $281.272B ▲ $179.215B ▼ $102.221B ▲
Q2-2025 $40.196B ▼ $269.125B ▼ $183.879B ▼ $86.289B ▲
Q1-2025 $49.555B ▼ $276.958B ▼ $192.412B ▼ $85.723B ▼
Q4-2024 $56.499B ▲ $298.006B ▲ $204.91B ▲ $94.398B ▲
Q3-2024 $47.134B $271B $186.099B $86.169B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $10.971B ▲ $7.76B ▲ $2.746B ▲ $-1.227B ▲ $9.476B ▲ $7.26B ▲
Q2-2025 $4.482B ▲ $4.083B ▼ $-10.094B ▼ $-3.279B ▼ $-8.639B ▼ $3.525B ▲
Q1-2025 $3.89B ▼ $4.086B ▼ $1.224B ▲ $-686.353M ▲ $4.676B ▲ $3.403B ▼
Q4-2024 $4.904B ▲ $18.682B ▲ $-8.838B ▼ $-5.881B ▼ $3.205B ▼ $17.966B ▲
Q3-2024 $3.69B $13.749B $-287.805M $-4.041B $9.766B $13.233B

Five-Year Company Overview

Income Statement

Income Statement Ericsson’s sales have generally trended upward over the past five years, but profit quality has clearly weakened. After earlier years of healthy earnings, the company swung to a sizable loss in 2023 and only barely returned to break‑even in 2024. This points to margin pressure, higher costs, and likely a tougher spending environment among telecom customers. The pattern suggests a business with solid demand but under strain on profitability that management still needs to stabilize.

Balance Sheet

Balance Sheet The balance sheet looks reasonably solid but not as strong as a couple of years ago. Total assets have edged down, and the equity base has been reduced by the recent loss, which trims the financial cushion. Cash has improved from the prior year, while debt remains fairly steady, indicating manageable leverage and decent liquidity. Overall, Ericsson still has room to maneuver financially, but it has used up some of its safety buffer.

Cash Flow

Cash Flow Despite volatile profits, cash generation has been a relative bright spot. Operating cash flow has usually been positive and was especially strong in the latest year, and free cash flow has generally followed the same pattern. Investment spending on physical assets has been steady and not overly heavy, meaning the business does not need extreme outlays to keep running and evolving. This contrast—weak accounting profits but solid cash—suggests non‑cash charges, restructuring, or timing effects have played a meaningful role in the income statement.

Competitive Edge

Competitive Edge Ericsson holds a leading position in global mobile networks, especially in 5G, with a long history of working with major telecom operators around the world. Its large patent portfolio, deep technical expertise, and broad mix of equipment, software, and managed services create switching costs and help differentiate it from rivals such as Nokia and Huawei. Long‑term customer relationships and scale in more than a hundred countries strengthen its moat, but the company still faces intense price competition, shifting political and security considerations, and the risk that operators delay or resize their network investments. The move toward Open RAN and software‑centric networks is both a threat and an opportunity, depending on how effectively Ericsson adapts.

Innovation and R&D

Innovation and R&D Innovation is a core strength: Ericsson is a major contributor to mobile standards, holds a very large patent portfolio, and has a long track record that includes foundational technologies like Bluetooth. The company is investing heavily in advanced 5G, early 6G research, AI‑driven network automation, and exposing network capabilities through APIs so developers can build new services. It is also pushing into private 5G networks and enterprise solutions, helped by acquisitions such as Cradlepoint. These efforts could open new revenue streams over time, but they also mean sustained R&D spending and execution risk if new use cases or monetization models develop more slowly than expected.

Summary

Overall, Ericsson combines a strong strategic position in global telecom infrastructure with financial results that have recently been under pressure. Revenue has held up reasonably well, but margins and net income have deteriorated, highlighting the need for better cost control, pricing power, or mix improvement. The balance sheet and cash flows remain acceptable and give the company time to adjust, even after a difficult profit year. Long term, Ericsson’s leadership in 5G, rich patent base, and push into AI, APIs, and enterprise networks are meaningful advantages; the key uncertainty is how effectively these strengths can be translated into more stable and higher‑quality earnings in a cyclical and highly competitive industry.

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